SBA’s Great Lakes Regional Administrator & Local Directors Addressing the Paycheck Protection Program Flexibility Act.

CHICAGO – At 11 a.m. EDT, Monday, June 8, the U.S. Small Business Administration’s Great Lakes Regional Administrator Rob Scott and Cleveland, Columbus, Indiana and Michigan District Directors hosted a media call to review the Paycheck Protection Program Flexibility Act, signed into law by President Trump on Friday, June 5, and provide an update on the PPP as a whole.To hear Administrator Scott, and District Director Poynter share details and answer questions click play on the podcast shared immeadiately below:

On the call with media of the three states were:
Great Lakes Regional Administrator Rob Scott
Cleveland District Director Gil Goldberg
Columbus District Director Everett Woodel
Indiana District Director Stacey Poynter
Michigan District Director Constance Logan, they were joined by media from the three states via phone. 

As of the May 30, 2020, Paycheck Protection Program report, approximately 4.5 million PPP loans had been approved nationally and $138 billion remained available. Great Lakes Region data shows more than 674,000 small businesses and non-profits in the six states have been approved for the loans.

Here are more details shared in a follow-up by the SBA Monday evening:

Monday SBA Administrator Jovita Carranza and Treasury Secretary Steven Mnuchin issued a joint statement on the Paycheck Protection Program Flexibility Act that President Trump signed into law on Friday and includes several changes for the PPP. The SBA is updating rules, guidance and various forms for implementation and we will alert you when they are issued. Some items to note from the Act are:

• June 30, 2020, remains the last day for the SBA to accept loan applications from lenders
• Borrowers now only have to use 60% (changed from 75%) of the loan proceeds for payroll costs for forgiveness; if a borrower uses less than 60% for payroll costs, the borrower will continue to be eligible for partial loan forgiveness
• Covered period is now 24 weeks (changed from 8 weeks) from loan disbursement or December 31, 2020, whichever is earlier; for loans prior to June 5, borrowers can elect 8 weeks
• Any PPP loan after June 5 now has a five-year term; term changes for PPP loans prior to June 5 will have to be agreed to between borrower and lender
• Additional safe harbors from reduction in loan forgiveness re: the inability to return to previous business levels or to rehire or find new qualified employees
• PPP loan deferral period will not start until the date the SBA remits the forgiveness amount to the lender or, if the borrower does not ask for forgiveness, it is now 10 months from the eligible date of forgiveness 

As for the most current numbers, the latest Paycheck Protection Program Report shows that as of June 6, more than 4.5 million PPP loans have been approved nationally and approximately $130 billion remains available when accounting for statutory program costs. Great Lakes Region state and total PPP loan data is below, showing more than 681,000 small businesses and non-profits in the six states have been approved for the loans. 

###

About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start and grow their businesses. It delivers services to people through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov. 

For detailed information on SBA programs for the coronavirus, visit www.sba.gov/coronavirusrelief and for information on all federal programs, visit www.usa.gov/coronavirus or www.gobierno.usa.gov/coronavirus (en Español).